FAQs
PaperTale supports a gradual transparency transformation of factories and suppliers by offering tailored support aligned with their unique needs and timelines. Our approach embraces various levels of transparency, quantified by the percentage of transformation accomplished. The system’s modularity and flexibility enable seamless initiation of the transformation journey, no matter the company’s current stage. A higher percentage reflects improved data quality, leading to enhanced transparency.
We have developed a platform called PaperTale Network (PTN), where brands and factories sign up and invite their suppliers. For each transaction, the supplier needs to provide proof, such as purchase receipts or material gate passes which are then verified by designated receivers.
Central to PaperTale’s methodology is the principle of two-point verification, ensuring that every data point is verified by two parties or through two distinct methods. Leveraging this principle, PaperTale has devised a systematic approach to validate transactions within its network. This approach tailors verification methods to different types of data points, adapting them according to the transparency status of each factory.
Our framework, designed to continually assess, refine, and enhance supply chain performance, revolves around three core pillars: product, people, and planet.The journey toward maximal transparency for a factory is quantified as a percentage of achievements across these three core pillars (product, people, and planet). For instance, a factory may exhibit 70% progress in social transformation, 30% in environmental initiatives, and 10% in enhancing material traceability. Crucially, there’s no prescribed pathway or sequential fulfilment of transformation criteria. Instead, companies are empowered to set their transformation pace and prioritise steps based on their unique requirements and circumstances.
Our verification methods are divided into different steps, each defining how far towards maximal transparency a supply chain is. Read more about verification methods used for our core pillars:
Product (materials origin)
Step 1 – Tier 1 product digital twin on blockchain (achieving 30%)
In this initial phase, the Tier 1 manufacturer, responsible for producing the final product, gains access to PaperTale’s platform. Here, a digital twin of the final product is generated and linked to the blockchain. The Tier 1 factory uploads verification documents for transactions it directly participated in. While other segments of the supply chain can be outlined with minimal information from the Tier 1 factory, these details remain, and are marked as, unverified.
This level requires minimal commitment from members and is accessible exclusively through PTN, with an optional consumer app.
Step 2 – Multi-Tiers Digital Twins of Raw Materials (achieving 70%
In this phase, the Tier 1 invites other involved parties to add or verify their data. These parties have two verification options: they can either access the PaperTale Network and verify their contributions there, or they can simply submit documentary evidence, such as a proof of purchase. In short, more data about the supply chain is now available and verified.
Step 3: Achieving 20% – Tracer/NFC – Geolocation
For full traceability, a tracer or NFC (Near Field Communication) tag is attached to the material as it progresses through the supply chain, be it cotton, yarn, fabric, etc. Upon reaching a new party, the tag is scanned using the PaperTale Supply Chain App, capturing and recording the date, image, and location of each scan. For instance, a cotton farmer prints and attaches a tag to a batch of cotton by using the Supply Chain App. Next, when receiving the cotton, the buyer scans the tag, automatically logging the scan details. This tracking process ensures accurate tracing of material flow and enhances verification measures within the supply chain.
People (social verification system)
Step 1: Achieving 20% – Digital Twin on Blockchain with Key Data Registration
A digital twin is created for production workers, capturing essential details such as age, gender, and identity verification. In this step, individuals submit valid documentation to confirm their identity.
Step 2: Achieving 70% – Worker Empowerment via the Supply Chain App
All workers gain access to the Supply Chain app, facilitating direct engagement with the system. They can use the app on their smartphones, or through a facility-installed kiosk to ensure access even for workers without smartphones.
The app offers 10 features, each contributing to advancing the transformation process and percentage. Refer to Table 1 below for a breakdown of these features, including additional explanations.
Table 1: Features provided by the Supply Chain App
Verifications | % | Notes |
Step 3: Achieving 100% – Profit Sharing System
Recognizing financial constraints, factories implement a profit-sharing mechanism where a portion of net profits is distributed among all employees, regardless of their roles. This approach demonstrates the factory’s commitment to fostering favourable working conditions with available resources. The Supply Chain app transparently showcases how profits are calculated and distributed.
Planet (impact verification)
Step 1: Achieving 10% – PaperTale Research Library
To assess the environmental impact, PaperTale leverages its own data library, offering research based, and region-specific calculations rather than global averages. Using the Life Cycle Assessment method, the PaperTale Network assigns impact data to each supply chain process. For instance, if cotton is sourced from Australia, the library provides data on water usage specific to that region.
Step 2: Achieving 30% – Factory Impact Measurement via Questionnaire
Factories complete monthly impact questionnaires, updating their impact status regularly.
Step 3: Achieving 60% – Submission of Bi-Yearly Impact Reports
Factories provide documentary evidence, such as water and electricity bills, to support questionnaire responses mentioned in Step 2. This data is used to generate bi-yearly impact reports. The PaperTale Network calculates averages from this data every six months.
Step 4: Achieving 100% – Implementation of IoT Sensors
IoT sensors installed within the facility gather real-time data, which is then imported and updated by the PaperTale Network at regular intervals. Using this IoT data, real-time impact reports are generated for the facility.
Besides PaperTale’s methodology of collecting and verifying the data, PaperTale added another layer of data protection by using Blockchain Technology. With Blockchain Technology, data is encrypted and then stored in a decentralized network. This means that the data is not stored and processed by a single entity but by a whole network. PaperTale chooses the route of a public blockchain to avoid private consortiums and thereby data manipulation by the consortium members. As a result, it cannot be tempered or deleted from the system.
The following data is uploaded on the public blockchain:
- the materials (assets)
- the quantity of the material
- the proof of purchases
- transactions between supply chain members
- the wage transactions and workers’ confirmations of payments
(*none of the data is publicly shown – its for the workers personal use and to verify their wages. Read our Privacy Policy.)
The factory traces this information by adding transactions of the materials ordered and received between them and their direct suppliers and verifying this by uploading the receipt of purchase, as well as gatepasses of the materials as proof. In the PaperTale system a digital twin of the material is also created and the proofs are attached to it. The gatepasses contain the transfer information of the material such as material type and quantity, thereby verifying the digital quantities of the materials in the system (for example: 3 kg of cotton). These quantities will be then utilized by the next supplier to create their digital assets in the PaperTale network (for example: the cotton is used to make yarn). This applies to all members up to the final product development stage, which is the stage where the PaperTale network can calculate the composition and origin of the material.
The factory also enters information from further down the supply chain that they were not directly involved in, for example from the suppliers of suppliers. Whenever these indirect suppliers are not registered on PaperTale’s platform, PaperTale’s system marks these transactions as unverified.
The following information is shown in the PaperTale’s app.
- The workers who were involved in the production process.
- The age verification of the worker to check that there is no child labour (according to the ILO general standards) involved in the process.
- Workers’ wages information showing whether they have been paid as per law and if they have confirmed this.
- Information regarding the total number of registered workers in the facility.
- Information regarding the gender ratio inside the facility.
- The type of employment for workers, to know if they have a permanent contract or a short-term contract.
In terms of which workers are shown from the factory, the PaperTale app shows all workers that have worked on that particular garment. Thus far, the PaperTale system is not showing the social impact of the supply chain members that are not registered on the PaperTale network. This means that workers who have worked on for example the farm that produced the cotton may not be shown if that farm is not registered in the PaperTale Network. However, PaperTale is continuously working on adding more members to the network.
The PaperTale system checks whether a wage is above the minimum wage that is required by the government for the specific area in which a factory operates.
The PaperTale system shows the workers that have worked on the particular garment that has been scanned. The data that is required for our social impact (see the question above) is of a generic nature. Privacy sensitive data like the workers’ pictures is optional. When each craftsman is signed up to the PaperTale system, they have the option to include their picture, or they can choose to remain a unique but anonymous “number in the system”. It is important to note that either option still leads to the worker being fully protected as in both scenarios they have the ability to login & verify their work and wages. Some craftsmen prefer to have a public profile on the system so that they can be acknowledged for their work while others wish to stay anonymous.
Read our Privacy Policy here.
First, it is important to note that in PaperTale’s platform, only the approximate impact of the materials of the garment is calculated and does not include the impact of accessories like buttons and zippers. However, the impact calculation of the accessories is a work in process.
The PaperTale system employs three distinct methods for gathering and computing environmental impact information. The most robust and recommended approach involves integrating the system with Internet of Things (IoT) devices to access real-time data on water and energy usage within the facility.
In instances where the facility lacks the infrastructure for IoT devices and real-time data collection, the secondary method for data acquisition involves calculating the total monthly water consumption and six-month energy consumption of the factory. The PaperTale system then derives average impact data per garment from these reports, incorporating the results into the system for visualization.
Should the facility face challenges in collecting the aforementioned data, the PaperTale system offers impact assessments derived from peer-reviewed research articles that focus on specific processes and regional considerations and store it in PaperTale’s impact library in the PaperTale network.
PaperTale’s impact calculation is based on the Life Cycle Assessment (LCA) methodology. However, the garment factory impact goes a bit more into detail on top of the LCA methodology. The methodology for calculating the impact of this data was made following these standards:
- ISO 14040:2006 for the LCA of supply chain
- ISO 14050 for harmonized environmental management vocabulary
- ISO 14025 for standardization of environmental declarations
The impact calculation consistently includes transportation impact across the supply chain. For this, calculations provided by the non-profit organisation Network for Transport Measures (NTM) are utilised. NTM’s objective is to establish standardised methods for assessing the environmental impact of different transportation modes.
These methodologies for impact assessment are explicitly detailed in the PaperTale transformation matrix. Facilities are required to adopt the appropriate measures to acquire and input impact data according to their level of transformation within the PaperTale system. Furthermore, consumers can access member statuses and impact details through the consumer app.
Yes, PaperTale’s platform offers a comprehensive compliance coverage that ensures compliance with critical compliance (like DPP, Norwegian Transparency Act, and Modern Slavery Act) while also preparing for upcoming laws and regulations.
A Digital Product Passport (DPP) is a structured collection of product information accessible electronically through a unique identifier. It focuses on sustainability, circularity, and facilitating re-use, remanufacturing, and recycling.
One of the goals of the DPP is to provide consumers with transparent and trustworthy information about the sustainability and ethical aspects of the product. To ensure DPP compliance, PaperTale provides customisable data carriers, product data collection and verification. Consumers can follow the complete product journey in the consumer app, where all data is securely stored on blockchain.
For brands and their suppliers, it is important to provide structured product data with defined access rights, accessible electronically through a data carrier, which PTN offers. Our solution enables all stakeholders to exchange information, promoting the extension of garment lifespan and enhancing re-use, remanufacturing, and regeneration down to the fiber level.
To learn about PaperTale Ecosystem please visit our page here.
Yes, information from the online store can be seen on the web app. The web app has basic information regarding the product, its environmental impact and workers. However, the PaperTale app provides detailed information by simply scanning the NFC or QR code on the product.
No, the NFC tag on the garment is a passive tag and does not have any contact with satellites like phones do. This tag only contains information regarding the URL of the product and is only activated when the app(device) is near it.
When a garment is scanned, PaperTale receives the following information:
- Product Name
- Scan Type (NFC or QR code)
- Scan Time (Date and time of the scan)
- Location (Approximate City & Country location where the code is scanned from)
PaperTale is not collecting any information about the device or consumer while scanning the QR code.
Everything coming to the PTN’s database is owned by PaperTale but this ownership is temporary depending on the type of data. This means that in the context of GDPR (The General Data Protection Regulation), PaperTale will act as the Data Controller, and it’s PaperTale’s duty to collect, store, retain, and secure the data in a way that it’s accessible for PaperTale’s customers.
If any party wants their data to be deleted then PaperTale is obliged to do so. As data on the Blockchain cannot be deleted, this data forms an exception.
No, PaperTale has made a new system to gather, verify and record the data. This system goes beyond the conventional methods that often rely solely on audits. In PaperTale’s systems, audits are one piece of the puzzle, but not the centerpiece. After collecting and verifying the data according to PaperTale’s system, the impact is calculated through an impact library.
All workers are registered on the PaperTale system, and their work on each garment is logged under their respective names. To achieve Step Two (70%) in the Social verification category, workers confirm their payment compliance with their contracts. This verification is shown by a green tick next to their salary payroll on the consumer’s app. Workers can verify their payment status by accessing the PaperTale Supply-chain app via their mobile devices or using the PaperTale Kiosks available in the factories.
The PaperTale system verifies whether the wages outlined in the contracts exceed the minimum wage mandated by the government for the specific area in which the factory operates. Minimum wages are defined as the lowest remuneration that an employer is legally obligated to pay to wage earners for their work within a specified period, and this rate cannot be reduced through collective agreements or individual contracts.
What makes PaperTale unique is that the solution:
- includes both environmental and social impact
- does not just collect data but verifies this data as well. In itself, the approach towards this verification is also unique because the system includes multiple levels of verification, allowing factories to gradually become more transparent, and showing consumers what the status of transparency is
- uses a public Blockchain, allowing everyone to trace the transactions
In this way, there is a direct link between consumers and brands, so that consumers can get full transparency about what they buy.
